Re: NEWS! Coach
in response to
by
posted on
Jan 08, 2008 11:49AM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Hi Fdrake!
I think the results are within the grades necessary to be economic if they find enough of it. You like to see at least 5m widths for any underground mining scenario, since the costs run higher so the wider the mineralized zone, the more ore you can extract per meter of underground development infrastructure you must drive. The wider zone of 27m lower grade ore is also within economic parameters for a large tonnage operation, ie. they would need to define several million tonnes to make it worth developing. Another plus is that the ore was hit relatively shallow, within 50m of the surface, so its possible they could plan an open pit mine, but for that to make sense you need tens of millions of tonnes, so thats not really worth considering yet.
The biggest impact from this news is that it validates just how intensely mineralized the entire property area is. Abundant gold with grades off the charts... extensive base metals and visible sulphide mineralization... and now this new deposit area with high grade nickle, and even a sniff of PGMs. Its pretty impressive. And KXL controls the majority of the district with no back in rights.
cheers!
mike